Overview Of Social Security & SSI Disability

Social Security Disability

"Social Security disability" is a common term that includes two types of benefit programs administered by Social Security payable to you if you are unable to work due to a medical condition - Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). You can obtain disability benefits if you satisfy the 1) SSDI or SSI non-disability criteria, and 2) disability criteria. You may simultaneously qualify for both SSDI and SSI benefits.

SSDI

As to the non-disability criteria, Social Security awards you Social Security "credits" when you work and pay taxes on your earnings. You earn one credit for each $1,410 (2020 amount) of income you earn per year up to a maximum of four credits per year. You must earn enough work credits to be both fully insured and insured for disability. Additional SSDI benefits are paid to you if you have family members who are financially dependent on you. Disabled children cannot receive SSDI benefits based on their own disability. Benefits include monthly cash benefits, back pay, an earnings freeze, and Medicare (insurance).

SSI

SSI is a needs-based disability program (welfare) that is available to you if you are disabled or your child if your child is disabled, you or your child satisfy residency requirements, and you or your child have limited income and assets. Disabled children can receive SSI disability benefits regardless of whether the parent is disabled. There are no benefits paid to dependent family members. Benefits include monthly cash benefits, back pay, and Medicaid (insurance).

The Meaning Of "Disability" For Adults

Social Security's definition of disability is complicated because the definition is based on a combination of your medical impairment, age, education, past work, and work skills. But generally to be found disabled, depending on your combination of factors, you either have to prove 1) you are totally disabled from all jobs, or 2) you cannot do your past work and other work to which you have transferable work skills. SSDI and SSI require total disability. You are not paid a percentage for any medical condition or body part like in worker's compensation or Veterans Administration's (VA) disability cases, and you are not paid an amount for a specific injury like a personal injury claim.

A full discussion is available Here - Adult Social Security Disability Criteria: 5-Step Evaluation Process

The Meaning Of "Disability" For A Child

SSDI

A disabled child cannot get SSDI disability benefits, but if you are disabled and you receive SSDI benefits, you can get SSDI dependent benefits for your child. The benefit amount for each of your dependent children is 50% of your benefit amount subject to your family maximum (the maximum amount of benefits that can be paid on your record) which is up to 188% of your benefit amount.

SSI

A disabled child can get SSI disability benefits if 1) the child is disabled; 2) you, the parent, meet the SSI residency and income and asset requirements; 3) the child is unmarried and not head of household; and 4) the child is under 18 or under 19 and still in high school. You, the parent, do not have to be disabled. Disability for a child's SSI application means your child must meet or equal a Social Security listing, or the child must functionally equate a listing by having a "marked" limitation in two domains of functioning or having an "extreme" limitation in one domain of functioning. The six domains of functioning are as follows:

1. Acquiring and using information,
2. Attending and completing tasks,
3. Interacting and relating with others,
4. Moving about and manipulating objects,
5. Caring for yourself, and
6. Health and physical well-being.

A full discussion is available Here - Child Social Security Disability Criteria: 3-Step Eval. Process

Age And Disability Benefits

Children

Children are under age 18 or under age 19 and still in high school. Children can be any age and receive either SSDI dependents benefits or SSI benefits based on their own disability.

Adults

Adults are any age not considered a child. If you apply for SSI disability benefits, you can be any age as long as you are an adult. If you apply for SSDI disability benefits, you can be any age as long as you are an adult up to your full retirement age.

SSDI/SSI Benefits

If you receive SSDI or SSI benefits, you are entitled to four types of benefits:

1. Monthly benefits;
2. Back pay;
3. Medical insurance (Medicare or Medicaid); and
4. Earnings freeze.

Monthly Payments

SSDI. The SSDI monthly amount is based on how much a person has paid in Social Security taxes. The average 2020 SSDI individual monthly amount is $1,258. The average 2020 SSDI family maximum is $2,176. SSDI Amounts.

SSI. The federal SSI monthly amount in 2020 is $783 per individual and $1175 per couple - Federal SSI Amount. Some states supplement the federal amount (usually about an additional $25-$75).

Back Pay

SSDI. SSDI back pay is your accrued monthly benefit amount. It starts, at the earliest, from whichever date is later - 1) 17 months before the date you apply for benefits, or 2) your alleged onset date (the date you allege disability) and ending the date you are finally paid benefits. However, Social Security imposes a five-full-month waiting period on you which means your benefits start five-full-months after either of the two above starting dates. Your SSDI back pay is paid in one lump sum.

SSI. SSI back pay is the accrued monthly benefit amount starting, at the earliest, from the date you apply for benefits. It ends the date you are finally paid by the SSA. Back pay is generally paid in three installments six months apart.

Medical Insurance

Medicare. Medicare is a national medical insurance program administered by the United States government through private insurance companies. If you are entitled to SSDI benefits, you will receive Medicare. Medicare requires that you pay monthly premiums and co-pays. To receive Medicare, you must wait 24 months. This 24-month waiting period starts after your five-month waiting period.

Medicaid. Medicaid is a medical insurance program administered jointly by the United States government and individual states. If you are entitled to SSI benefits, you will receive Medicaid. There are usually no costs to the recipient.

Earnings Freeze

The earnings freeze is related to your retirement benefits. When Social Security determines your monthly retirement amount, it considers all your adult years of earnings. If you have years of no-earnings, this will reduce your monthly retirement amount. If you have years of no-earnings, and you were determined by Social Security to be disabled in those years, Social Security does not include those no-earnings years when it calculates your monthly retirement benefit. This is the earnings freeze. Hence, your retirement benefits are higher.

A full discussion is available Here - Your Benefits: Social Security Disability & SSI

Family Members Benefits

SSI

If you receive SSI benefits, your family members are not entitled to family member benefits.

SSDI

If you receive SSDI benefits, certain family members can receive monthly benefits and back pay, but not Medicare, if your family members are financially dependent on you and meet other requirements. Your family member's benefits will not reduce your benefit. The family members that may be entitled to SSDI dependent benefits and their monthly benefit amounts are as follows:

• Child - 50% of your monthly amount for each child,
• Spouse - 50% of your monthly amount,
• Divorced Spouse - 50% of your monthly amount,
• Parent - 82.5% of your monthly amount for one parent and 75% each for more than one parent, and
• Widow/Widower - 100% of your monthly amount.

However, you are subject to a family maximum monthly benefit amount payable on your record which is 150% to 188% of your monthly benefit amount. That is, your family members can receive up to an additional 50% to 88% of your monthly benefit amount (any divorced spouse's benefit or widow/widower's amount does not count against your family maximum). If you have multiple qualifying family members, they split the family benefit amount equally. For example, let's say you receive $1,200 per month in monthly disability benefits, and your family maximum monthly benefit amount is $1,800 (50% more than your monthly benefit amount). If you have one qualifying child, that child will receive $600 per month in dependent's benefits (a child gets 50% of your monthly amount). If you have three qualifying children, the three children will each receive $200 per month in dependent's benefits for a total of $600 ($600 is 50% more than your monthly amount of $1,200).

A full discussion is available Here - Your Family's Benefits: Social Security Disability & SSI